H.C. Wainwright analyst Kevin Dede reiterated a Buy rating on Bitfarms (BITF – Research Report) today and set a price target of $4.00.
Kevin Dede’s Buy rating for Bitfarms is predicated on a strategic investment in mining rigs and an improvement in operational efficiency. Bitfarms’ recent purchase of $95M worth of mining rigs is set to expand the company’s hashing capacity to 21Eh/s, subject to a $75M option and the continued relevance of their current machines post the upcoming halving event. This acquisition includes uniquely designed Antminer T21 machines that enhance Bitfarms’ fleet, reducing power efficiency to 25j/Th from the current 35j/Th. The new machines are also capable of operating in extreme heat without requiring additional cooling infrastructure, offering significant cost savings and operational flexibility.
Additionally, the option to acquire an extra 28,000 T21 rigs would further boost Bitfarms’ operational capacity at its new Paraguay facility, reflecting a proactive approach in site selection and capital expenditure planning. Bitfarms’ robust financial position, with approximately $117M in cash, Bitcoin holdings, and newly raised funds, supports these expansion efforts. The upgrade to the mining fleet is anticipated to lower operating costs from 3.5c/Th to 2.5c/Th, providing the company with increased margin elasticity and the ability to remain profitable even if hash prices decrease. This comprehensive strategy to upgrade infrastructure, improve cost efficiency, and secure financial health underpins Dede’s positive outlook on Bitfarms.
In another report released yesterday, Cantor Fitzgerald also maintained a Buy rating on the stock with a $2.00 price target.
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Bitfarms (BITF) Company Description:
Bitfarms Ltd owns and operates blockchain farms that power the global decentralized financial economy. It provides computing power to cryptocurrency networks such as Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Dash, earning fees from each network for securing and processing transactions. Bitfarms also provides computing power to cryptocurrency networks.
Read More on BITF:
- Bitfarms Announces Closing of C$60 Million Private Placement with U.S. Institutional Investors
- Bitfarms to purchase 35,888 Bitmain T21 miners at $2,660 per unit
- Bitfarms Initiates Transformative Fleet Upgrade that Supports 17 EH/s and 391 MW in 2024
- Bitfarms Announces C$60 Million Private Placement with U.S. Institutional Investors
- Bitfarms to sell 44.4M shares at C$1.35 in private placement
